Question

Debts show open but Collection Agency ceased collection activity, but it isn't reporting that way.

One collection agency has three debts of mine. Because of my disability and inability to pay, the agency has said it will cease all collection activity, but will still report the balance owed. I'm confused. The accounts still show as active, open collection accounts even though they agreed to cease all collection activity. In other similar situations, the accounts are shown as "closed" but with balances. It is only this agency that shows them as open and "active" despite the fact that they have ceased all collection activity. I believe the accounts are not being reported correctly as "closed with balances" rather than "open collection accounts," but the agency is refusing to report them differently. I've asked for a letter from them acknowledging their cease and desist action, but I'm not sure they'll provide it, since they "never do that."

Is there a correct way for the agency to be reporting this? Do you have an article or faq that explains how they should be reporting this situation? I can file a dispute for incorrect reporting, but I wanted to see if you have any information about the correct way for them to be reporting these accounts.

No.

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Truth be told that if the debt is yours, they can report it as an open collection until the 7 years runs out. Depending on the Statute of Limitations in your state, they may not have legal standing to sue you (in my state of CO, the SOL is 6 years).

The collection agency can "wake up on the wrong side of the bed" at any point, and decide sueing you is the way that want to proceed.

My advice. Do nothing! If you rock the boat, they'll take notice. You want to fly under the radar for as long as possible.

My question was whether or not there is a way for these agencies to report the correct status of these debts, which the agency itself determined to be uncollectable and which they have said they will make no further attempt to collect. I'm not saying they can't or shouldn't report it. I'm saying there is a distinction between an open, collectable debt that they may legitimately pursue collection activities on, and one they have determined they will no longer pursue any collection activities on. Reporting it as open makes it look as though they can pursue collection activities again on the amount owed, when they have already said they will not. That makes it appear as though I a much larger debt burden than I really have.

If they should not report these as closed as you suggest, and it they arent really open, collectable debts, how else are they supposed to report it? Is there an alternative? The other agencies I've worked with have determined that reporting them as closed but with a balance was the correct way. I'm not sure why this company hasn't.

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